Christmas is less than 60-days away and Sears has already started to selectively sell their Black Friday specials. I therefore found it extremely interesting to read a Bloomberg article titled Wilbur Ross Sees Huge Commercial Real Estate Crash. While this title might not be that big of a surprise, his strategy when to reenter the market is interesting.
Dubbed the King of Bankruptcy by clients during his quarter century at the Rothschild investment bank, Ross entered the U.S. home mortgage business as an increasing number of borrowers quit making payments and profits sank in loan servicing.
“Our methodology is to make a great big list: What’s every thing we can think of that’s either wrong with the industry or that we just plain don’t like about it,” Ross said today.
“Then we start work on another list. If we had control of this industry, what would we do to fix each one of those problems?” he said. “Once we feel that there is a reasonable likelihood that the second chart kind of equals the first chart, that’s when we get ready to do something.”
So the question today is,
- What lists are you working on today?
- What don’t you like, and what do you like about the economy today?
- What don’t you like and what do you like about the business you’re in?
- Are you ready to invest or are you holding on to cash?
- What would need to change or to alter your strategy?
These are just a few of the questions every business needs to ask today. What questions are you asking, or avoiding?
